Pine Labs acquires API fintech startup Setu in $70 mn-$75 mn deal

Pine Labs, a merchant commerce platform, announced the acquisition of Setu, a Bengaluru-based API fintech startup, for US$ 70-75 million. The transaction will include both cash and equity. CEO of Pine Labs Mr. B Amrish Rau stated that Setu is a fantastic addition to the Pine Labs platform. As APIs intensify the competitive fintech landscape, embedded financial services and open banking will be the way forward. The embedded finance market value is expected to exceed US$ 138 billion by 2026.

Setu's products are in high demand; their APIs are used in a wide range of industry verticals, including startups, retail enterprises, banks, insurance, and lending companies. Setu's existing and emerging use cases span multiple digital ecosystems, including Aadhaar eSign, BBPS bill payment, payment collection integration via WhatsApp, and FASTag payment collection, to name a few.

Setu collaborates with account aggregator partners, which are non-banking financial companies operating under the Reserve Bank of India's 'NBFC-AA' licence. They allow users to consolidate all of their financial data in a single location and quickly access services.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.